Business News

FG opens offers for N150bn sukuk bonds at 15.75% interest per annum

The Federal government through the Debt Management Office (DMO) has opened offers for subscriptions for 10 years of Ijarah Sukuk at 15.75% interest per annum due in October 2033.

The offer was disclosed in an official announcement from the DMO today. The subscription period is billed to last for 9 days running from October 3rd and 11th with the settlement date being October 13th.

The latest FGN sukuk will mature in October 2033, lasting for ten years as interest will be paid every half year.

The statement from the DMO reads,

Unit of subscription- the unit of subscription is N1000 per unit subject to a minimum subscription of N10,000 and in multiples of N1000 thereafter.

Issuer- the sukuk is being issued by the FGN road sukuk company on behalf of the Federal Government of Nigeria.

The rental payments are repayable for half a year. However, bullet redemption can be paid on maturity.

The DMO also stated that funds raised from the offer will be used solely for road construction across the six zones in the country.

The DMO called on interested investors to call their issues houses for further information and advice.

Sukuk serves as a fixed-income capital market tool, authorized by the Debt Management Office (DMO) on behalf of the federal government, for funding road projects within the nation.